Raj Ltd. was registered with 70,000 equity shares. They issued 40,000 equity shares @ 10 each payable as follow :On Application Rs. 4 per shareOn Allo - Accountancy MCQ CUET Accountancy 2022 23 Aug Shift 2 PYQs 2026 | ExamTest.live

hardMCQCUET Accountancy 2022 23 Aug Shift 2 PYQs2026Accountancy

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Raj Ltd. was registered with 70, 000 equity shares. They issued 40, 000 equity shares @ 10 each payable as follow :On Application Rs. 4 per shareOn Allotment Rs. 3 per shareand Balance on 2 callsThe issue was over subscribed by 50, 000 shares. The directors decided upon making prorata allotment to 60, 000 shares while remaining were returned.The amount to be adjusted with the call of allotment will be :

Solution & Step-by-step Explanation

Applicants of 60, 000 shares were allotted 40, 000 shares on a pro-rata basis.Excess applications = 60, 000 - 40, 000 = 20, 000 shares.Excess application money received = 20, 000 \times 4 = Rs. 80, 000 .This excess application money is transferred (adjusted) towards the amount due on allotment.

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Raj Ltd. was registered with 70, 000 equity shares. They issued 40, 000 equity shares @ 10 each payable as follow :On Application Rs. 4 per shareOn Allotment Rs. 3 per shareand Balance on 2 callsThe issue was over subscribed by 50, 000 shares. The directors decided upon making prorata allotment to 60, 000 shares while remaining were returned.The amount to be adjusted with the call of allotment will be :

Rs. 1, 20, 000

Rs. 80, 000

Rs. 1, 60, 000

Rs. 2, 40, 000

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